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Indian BPOs must climb the value chain

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CIOL Bureau
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MUMBAI: Indian BPO Offerings must move up the value chain, was the common opinion shared by experts at Nasscom’s session on ‘Indian BPO Offerings Approaching Maturity’ today.

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Todd Furniss, Chief Operating Officer of Everest Group said, "in India offshore services have to move up the value chain and also start concentrating on segments like finance, accounts and HR. Buyers are looking at reducing transaction costs and also focusing on horizontal services. Niche services are also gaining relevance, wherefore firms must start concentrating on such areas and specializing in them."

He also added, "BPO firms are definitely doing a good job but as this market is growing considerably these steps have to be taken into consideration."

Even Steven Gruber, chairman of EXL Services agreed saying, "global outsourcing neared 4.5 billion dollars therefore Indian companies have to take up this opportunity. BPO is similar to ITES because it is growing in the same manner like the latter did in the 1990s."

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All the three speakers shared the same opinion on the Indian BPO scenario, as Greg Baker, Business Development Director from Xansa added that, "client sophisticated relation, wide range of services, mature service portfolio are few of the pointers BPO firms must consider. Presently voice and transactional services are offered by these firms, which should change."

The other signs of immaturity pointed out by the speakers were, proliferation of supply and over capacity, lift and drop deals, low end transactions, service model, cost reduction and process performance, improving complex back offices. They also stated that these factors were important to improve margins.

The session was chaired by Tony Joseph, Editor of Business World.



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